Making high-risk loans was attractive to S & Ls in the 1980s because they
increased short-term profits and bonuses.

Question

Quizplus · Accepted Answer

S & Ls in the 1980s were attracted to making high-risk loans because these loans would generate short-term profits and therefore increase their bonuses. However, this approach to lending ultimately led to the collapse of many institutions during the savings and loan crisis of the 1980s and 1990s.

Making High-Risk Loans Was Attractive to S & Ls in the 1980s